RELEASE: pr5559-08

Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) filed an enforcement action against CSA Trading Group Inc. (CSA) and Michael Derrick Peninger, individually and doing business as the Cooper River Group, charging them with fraudulently soliciting and misappropriating more than $1 million of commodity pool participants’ funds, and with issuing false statements to pool participants. The action also charges four relief defendants with illegitimately receiving misappropriated funds.

The CFTC complaint, filed in the United States District Court for the District of South Carolina on September 29, 2008, alleges that, from at least October 2002 through January 2007, defendants CSA and Peninger, doing business as Cooper River Group and as an officer, employee, or agent of CSA, fraudulently solicited and accepted more than $1 million from at least 20 individuals to participate in purported commodity pools.

Contrary to defendants’ representations, as alleged, Peninger and CSA failed to open a single commodity pool account, but instead misappropriated almost all of the approximately $1 million of pool participants’ funds. Defendants used the misappropriated funds to pay back pool participants and to pay for personal expenses and other business ventures. Defendants concealed their fraud by issuing false account statements reflecting profitable returns and providing oral assurances to participants that they were making money, according to the complaint.

The complaint also charges the defendants with failing to register with the CFTC as commodity pool operators and failing to operate the commodity pools in accordance with federal commodities law.

The CFTC is seeking permanent injunctive relief, return of funds to defrauded participants, repayment of ill-gotten gains, civil penalties, and other equitable and ancillary relief.

In addition, American Middle School Athletic Association, Inc., The Blooming Village Florist, Inc., Daniel Island Builders, LLC, and Palmetto State Commodities, Inc. are named as relief defendants for having received pool participants’ funds to which they have no legitimate entitlement.

The CFTC wishes to thank the U.S. Securities and Exchange Commission for assistance in this matter.